The government will promulgate an Ordinance to amend the companies law to decriminalise various provisions, permit direct overseas listing for Indian corporates and changes to further improve the ease of doing business.
Finance Minister Nirmala Sitharaman said companies can list their securities directly in foreign jurisdictions and described it as “one big step for Indian companies”.
Sitharaman, who is also the corporate affairs minister, said violations involving minor technical and procedural defaults, including shortcoming in CSR reporting, inadequacies in board report, filing defaults and delay in holding AGM, would be decriminalised.
Majority of the compoundable offences sections would be shifted to internal adjudication mechanism. Besides, powers of a regional director for compounding various offences would be enhanced.
As many as 58 Sections under the Act would be dealt with under the mechanism compared to 18 earlier. Also, seven compoundable offences would be dropped altogether and five would be dealt under the alternative framework.